 Bangkok Bank offers mortgages for foreigners
As of this year, Thailand’s Bangkok Bank has begun offering mortgage loans to foreigners living and working in Thailand who want to buy residential property. However, because commercial banks in Thailand are not permitted to offer loans to foreigners directly, potential homeowners must apply for a mortgage loan via Bangkok Bank’s branch office in Singapore. Borrowers can obtain financing of up to 70 percent of the property’s appraised value with a limit of S$ 1 million (about US$ 592,000).
The mortgage loans have a maximum maturity of 10 years, denominated in either US dollars of Singapore dollars. The interest rate for US dollar-denominated loan is the Bangkok Bank’s US dollar prime lending rate plus 0.5 percent per annum. The interest rate for Singapore dollar-denominated loans is Bangkok Bank’s Singapore dollar prime lending rate per annum. Expatriates working in Thailand can repay the mortgage using local currency from their salaries.
The Bank charges a processing fee of S$5,000 (US$2,960) upon the customer’s acceptance of the loan offer, of which S$2,000 (US$1,184) is refunded once the customer actually draws on the loan. Once the purchaser of the property pays the down payment of the difference between the cost of the property and the loan amount, the loan can be drawn.
Individuals earning a monthly salary need an employer’s letter addressed to BBL, confirming position, period of experience: Income tax returns from the last two years: the last six months’computerised pay-slips and a work permit for those working in Thailand. Self-employed individuals need the last two years’ balance sheets as well as a profit and loss statement and the last two years’ income tax returns.
Everything will be done in Thailand through BBL’s cooperation with its branch in Singapore. If all required documents are submitted correctly, the approval process may take only two weeks. Customers do not need to travel to Singapore as the bank will process the application. Until now, foreigners who wanted to purchase property in Thailand had little choice other than to pay in cash that had to be sent from abroad, not locally.
New condo act protects consumers
Gary Biesty, Managing Partner of law firm Mayer Brown JSM, recently praised the new Thai Condominium Act – which came into effect this month – as an extension of the Consumer Protection Act. He pointed out several new conditions that will be benefit buyers and also make voting rights clearer.
The first new amendment that benefits potential owners relates to the promotional literature used to sell condominium residences prior to their completion, he said. As of this month, brochures and sales literature will be required to accurately reflect the actual design, facilities and services offered by the completed project. Promotional materials must be kept on file by the developers for checking purposes, and owners will have the right to question any inconsistence once the building is occupied. Biesty said this will prevent developers from selling condos units around subsidiary enticements like infinity pools without providing more solid amenities and services.
A second benefit to buyer will be the introduction of a standardized agreement for condominium purchases. In addition, the re-definition of co-ownership rights will mean a more equal distribution of power within the building. Under the new act, residents’ voting rights will be based on the area they occupy, rather than the amount of investment put in, and this will also apply to maintenance fees, meaning those with larger residences will pay more for the maintenance of common areas.
The definition of common property is to be extended to include any offices and administrative sections in the building but perhaps more significantly. In condominium that include commercial units dedicated access must now be provided to commercial units as not to disrupt or disturb residents that are entering or leaving the building. With shops, spas and other commercial units becoming an increasingly common feature of condominium developments, this amendment could create some interesting design challenges for architects.
Reported by Property Report Magazine
|
